To the long list of COVID-19's business victims, you can add dividend stocks.

For generations, a truism of investing had been that dividend stocks, on average, outperform their non-dividend-paying counterparts. No longer.

Returns from income-generating stocks have significantly lagged those of their non-dividend-paying peers this year, and there's little reason to expect that pattern to reverse itself. The chart below shows how two popular dividend ETFs have performed this year against the Nasdaq, which leans toward tech and growth stocks, and a well-known growth ETF.

Continue reading


Source Fool.com